Europe Offshore Helicopter Market - Growth, Trends, and Forecast (2018 - 2023)
Europe continues to contribute significantly to the global offshore helicopter services market, in terms of the revenue share. The European region accounts for around 9% of global oil reserves and 30% of natural gas reserves. Offshore areas around Europe, particularly in the United Kingdom’s North Sea and the Norwegian Continental Shelf are some of the most active non-OPEC areas promoting exploration, production, and maintenance activities. However, a decline in the crude oil prices has taken a heavy toll on European helicopter service providers, with prominent end users in the oil & gas industry looking for significant cost reduction in the offshore E&P expenditure. With the recovery of oil prices to sustainable levels and increased spending for offshore project development and maintenance activities, especially in the deepwater exploration and production (E&P) operations, the offshore helicopter services in European region are expected to register healthy growth during the forecast period.
The significant downturn witnessed by the oil & gas industry has led the regional offshore helicopter service providers to look for diversified and lucrative end-user sectors, such as search and rescue (SAR), offshore wind market, and emergency medical services (EMS). The SAR/EMS market is unaffected by volatile oil prices and is expected to evolve further in the region. The increasing demand for helicopter charters in search and rescue (SAR) operations, offshore wind industry, and emergency medical services (EMS) is expected to boost the demand for offshore helicopter services market. Furthermore, the increased outsourcing of public SAR services to the private sector is expected to continue to drive the offshore helicopters services market during the forecast period.
Bristow and CHC groups continue to account for the major market shares among the service providers in Europe. However, with increased diversity in the end-user market, such as offshore wind industry and SAR/EMS operations, other regional players are also expected to catch up during the forecast period.
Increasing Offshore Wind Development Activities to Provide Significant Growth Opportunities
The offshore helicopter service providers are witnessing growing interest from the offshore wind industry in European regions, especially in the United Kingdom, the Netherlands, and Germany. In 2016, the total installed offshore wind power capacity reached 14,384 MW, out of which approximately 12,631 MW were accounted for by ten European countries. Europe is estimated to further increase the capacity to 24 GW by 2020. Vattenfall, one of Europe's leading electricity utility companies, is seeking service providers for the helicopter charter services, for various offshore wind projects spread across the region. The contract, worth EUR 6 million, is divided into lots and covers a 24-month period. Similar contracts for offshore wind farm projects are on the rise across the European region, thus creating significant demands and opportunities for the offshore helicopter services market during the forecast period.
United Kingdom and Norway to dominate the Market
Owing to the increasing oil & gas and E&P activities, the United Kingdom and Norway are expected to dominate the European offshore helicopter services market. On the other hand, countries, such as the Netherlands and Germany, are expected to enhance their market shares during the forecast period. However, the industry is still uncertain of the adverse effects of the United Kingdom’s exit from the European Union (Brexit). The United Kingdom accounts for approximately 30-40% revenue of the European offshore helicopter services providers. A significant decline in the value of British pound, political uncertainty caused by demands for the additional referendum of Scotland in the EU region, and possible roll out of stringent government regulations, are expected to act as challenges to the market.
Key Developments in the Market
January 2018: CHC completed the first flight for the initial phase of Ørsted’s Hornsea Project One offshore wind farm in the United Kingdom. The Danish Helicopter operator, Uni-Fly partnered with CHC, to provide offshore service for Hornsea Project One, a 174–turbine farm under construction off the coast of the United Kingdom, slated for completion by 2021.
The major players include - Bristow Group Inc., CHC Group Ltd, Era Group Inc., PHI Inc., Uni-Fly A/S, Airbus Group SE, Leonardo SpA, Textron Inc., amongst others.
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Current and future Europe offshore helicopters market outlook in the developed and emerging markets.
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The segment that is expected to dominate the market.
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